Most Read

Most Read

Most Read

LETTER: Get SAA rescue off the ground

Six months after practitioners were appointed to devise a plan for the airline urgent action is needed

19 May 2020 - 17:12

Picture: 123RF/ RICHARD VAN DER SPUY

Business rescue expertise is sought when a business is in a difficult trading position. Like SAA, Comairhas recently opted for this process. This is one of the strategic enablers that is provided by the Companies Act to encourage companies to continue as a going concern.

In the case of SAA there have been counterarguments questioning the benefits of this process.

Business rescue is a voluntary process, and co-operation between the parties is therefore vital for its success. A meeting of minds is extremely important to ensure a successful process.

In the case of SAA what is at stake now is the question of whether it can be retainedin its current or a redesigned form.

The business rescue practitioners are reported to have allocated to themselvesR30mfor their services. It has also been reported that they are at loggerheads with the minister. This is unfortunate — it has been six months since the practitioners were appointed to devise an alternative plan forSAA.

For the sake of the employees and creditors let us not wait too much longer to unveil theSAArescue plan. Let us think of the lives of citizens who will be heavily affected by this delay.

Nyaniso QweshaVia e-mail

JOIN THE DISCUSSION: Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to busday@bdfm.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.